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A STUDY OF BINDING WIRE MARKET IN TAMILNADU FOR TATA STEEL

GOBINATH J / SREEKUMAR UNNI, AMRITA SCHOOL OF BUSINESS, COIMBATORE Industry Mentor: Mr. Jeslyn George, Manager (South), TATA Steel

Faculty Mentor: Dr. Deepak Gupta, Professor, ASB

c

Objective To introduce Tata Wiron Mild Steel (MS) and Galvanized Iron (GI) Binding Wires in Tamil Nadu market

Research questions 1. Market of MS Binding Wires in TN 2. Market of GI Binding Wires in TN 3. Current market scenario 4. Viable channel for Tata Wiron products 5. Major players in the market?

Sampling Technique

• Quota Sampling: Non Probabilistic Sampling

Sample Size

• 330 Shops. Mostly TMT dealers and other hardware shops dealing Binding Wires

Districts Covered

• 22 Districts

•For MS Wires Average MS wire sales/month: 2 tons (approx.)Total MS wire sales in TN: 3600 Tons For GI Wires Average GI wire sales/month: 0.7 tons (approx.).Total GI wire sales in TN: 385 Tons* Market Size from Dealers of MS wires •Thirupathi wires Tamil Nadu Market Size for MS Wires: 3000+ Tons Per month. Tata Steel can eye on 15 to 20 percent of the market share •Alagu wires Tamil Nadu Market for MS Wires: 3500+ Tons per month. Tata Steel can sell about 500 to 600 tons of MS wires in TN

Market size data from Extrapolation

79%

21%

Catchment Area

30 kmsandbelow

Morethan30 kms

Yes 69%

No 31%

Awareness about Tata Wiron

80%

20%

MS BW Sales

VNC BestWires

OtherBrands

0

50

100

150

MS Wire Purpose

MS WirePurpose

0%20%40%60%80%

100%

GI Wire Purpose

GI WirePurpose

A STUDY OF BINDING WIRE MARKET IN TAMILNADU FOR TATA STEEL

GOBINATH J / SREEKUMAR UNNI AMRITA SCHOOL OF BUSINESS, COIMBATORE

Inferences: Based on our study and analysis we were able to provide answers and recommendations to the research questions.

Acknowledgements: Our Sincere thanks to our faculty mentor Dr. Deepak Gupta and our industry mentor Mr. Jeslyn George, Manager South at TATA Steel for their continuous guidance and support throughout the project. We would like to extend our gratitude to all retailers for their inputs and time.

STRATEGY 1: Existing Wire Distributor

Benefits: • Low initial investment • Less inventory holding

cost • Local distributors-

better know how • Distributor retailer

relationship • Credit period load can

be shared Issues: • Reduced profit margins. • No retailer relationship • Promotional offer issues

STRATEGY 2: Own distribution network • Benefits: Direct retailer

contacts • Less supply issues • Better profit margins Issues • High initial set up cost • Time required to break

even can be high • Inventory holding costs and

logistics cost high

STRATEGY 3: Distributing through cement channel (Ultra Tech)

Benefits: • Ultratech’s strong

distribution network • Combo offer advantage

can benefit TATA Issues: • Less feasibility for GI

wires • Limited access

Distribution channel issues

COMPETITOR PROMOTIONS: • VNC variable pricing according

to quantity procured • Seasonal offers like Gold coins

etc • Gifts for achieving sales targets • Free delivery of material • Customer relationships

RECOMMENDED PROMOTIONS: • Advertise WIRON along with

TISCON • In store promotions • Discount offers along with

TISCON • Compliments and gifts to

retailers